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PSE&G $600 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

PSE&G $600 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, June 9 /PRNewswire/ -- Public Service Electric and Gas Co.'s (PSE&G) three new issues of first and refunding mortgage bonds are rated 'A' by Fitch. The new issues are: $250 million 6 percent bonds due June 1, 1995, $150 million 6-7/8 percent bonds due June 1, 1997, and $200 million 8-1/2 percent bonds due June 1, 2022. The issues were taken down from an existing $1 billion shelf registration. Affirmed are PSE&G's outstanding 'A' first and refunding mortgage bonds and collateralized pollution control bonds, 'A-' debentures and preferred stock, and 'F-1' commercial paper. The credit trend is stable, although earnings attrition is likely prior to an anticipated rate decision later this year.
 The ratings recognize a relatively slow sales growth environment, large albeit manageable capital requirements, a well-managed capital structure, relatively strong cash flow, and an increase in parent company equity support.
 On Nov. 14, 1991, PSE&G filed for a $668.7 million (13.6 percent) electric and gas rate increase that will not be decided before September 1992. Maintenance of credit quality is dependent on constructive rate treatment.
 Internal cash generation is expected to fund about 75 percent of forecast capital expenditures over the next five years, including about 60 percent in 1992. In addition, substantial equity funding from PSE&G's parent, Public Service Enterprise Group, is expected over the next three years. Relatively low-risk transmission and distribution facilities and nuclear-related expenditures account for the majority of the capital outlays. Incremental future generating requirements will be met largely through non-utility generation and by upgrading current capacity.
 -0- 6/9/92
 /CONTACT: Robert Hornick of Fitch, 212-908-0564/
 (PEG) CO: Public Service Electric and Gas Co. ST: New Jersey IN: UTI SU: RTG


CK -- NY040 -- 8370 06/09/92 12:27 EDT
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Publication:PR Newswire
Date:Jun 9, 1992
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